Multiple FIRs cannot be registered for identical loan transactions involving same borrower group under Maharashtra Cooperative Societies Act

The Bombay HC addressed multiple FIRs registered for identical loan transactions involving the same borrower group under the Maharashtra Cooperative Societies Act, 1960. The court held that while thorough investigation of alleged fraud is warranted, no second FIR can be registered for the same transaction or occurrence. Investigation may continue but no coercive action against petitioners until specified date. Petitioners were directed to appear before investigating officer on designated dates and cooperate with ongoing investigation.

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Issues:
Multiple first information reports (FIRs) based on the same transactions; Ad-interim relief against coercive action; Interpretation of Maharashtra Cooperative Societies Act, 1960; Legal protection during investigation.

Analysis:

The High Court of Bombay, comprising Judges S.S. Shinde and N.J. Jamadar, heard arguments from Mr. Ravi Kadam, Senior Counsel, and Mr. Nilesh Ojha, among others, regarding two Writ Petitions (St.) filed in 2021. The court issued notices returnable on 30th August, 2021, and directed the petitioners to serve private notices to respondents through various means and file proof of service. The petitioners sought ad-interim relief to prevent coercive action during the proceedings.

Mr. Kadam highlighted previous court orders related to the subject matter of the FIRs and argued against the lodging of multiple FIRs for the same transactions. Mr. Ojha supported these arguments, citing past court orders granting interim protection. However, Mrs. Pai, representing the State, contended that the instant FIRs were distinct from previous ones based on auditor reports under the Maharashtra Cooperative Societies Act, emphasizing the seriousness of the alleged scam.

Upon reviewing the submissions and evidence, the court found merit in Mr. Kadam's argument that the transactions in the FIRs were the same, indicating a potential abuse of process. The court reiterated that while further investigations are permissible, multiple FIRs for the same transaction are impermissible. Citing previous judgments, the court emphasized the need for careful consideration before registering new FIRs on the same allegations.

Consequently, the court granted limited ad-interim protection to the petitioners until the next hearing date, directing them to cooperate with the investigation. The petitioners were instructed to appear before the investigating officer on specified dates. The court scheduled the final disposal of the petitions, along with related cases, for 30th August, 2021, to ensure a comprehensive resolution of the issues at hand.

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